A

PROJECT
REPORT
ON
‘’A COMPARATIVE STUDY ON MUTUAL FUND ‘’
AT INDIA
BY
MR.ABHISHEK PANDORE
UNDER THE GUIDANCE OF
PROF. SHRUTIKA KHOLE
SUBMITTED TO
SAVITRIBAI PHULE PUNE UNIVERSITY, PUNE.
IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE
AWARD OF
DEGREE OF
BACHELOR OF BUSINESS
ADMINISTRATION(BBA) BATCH (2022-23)
THROUGH
MODERN COLLEGE OF COMMERCE AND COMPUTER STUDIES NIGDI
TAL.HAVELI, DIST.PUNE.
 DECLARATION

To
The Principal
Modern College of Commerce and Computer Studies, Nigdi
Savitribai Phule Pune University.
Respected Mam,

I ABHISHEK JAYSING PANDORE student of Modern College of Commerce

And Computer Studies, Nigdi Pune, hereby declare that the project report on “A
Comparative study on Mutual Fund’’ written and submitted by me to Savitribai
Phule Pune University ,In partial fulfilment of the requirement of the degree of
Bachelor of Business Administration Under the guidance of Prof.
Shrutika Khole is my original work and the conclusions Drawn are based on the
material collected by myself.

To the best of my knowledge, the matter presented in this project has not been submitted
for Award of any degree, diploma or membership either to this or any Institute or University.

DATE:

PLACE: ABHISHEK PANDORE

 Executive Summary
A mutual fund is a financial intermediary in capital market that pools collective
investments in form of units from retail and corporate investors and maintain a
portfolio of various schemes which invest that collective investments in equity and
debt instruments on behalf of investors.
SIP (Systematic Investment Plan) is a method of investing a fixed sum, regularly, in a
mutual fund. It is similar to regular saving schemes like a recurring deposit. SIP allows
you to buy units on a given date each month, so that you can device an investment /
saving plan for yourself. Once you decide the amount you want to invest every month
and the mutual fund scheme in which you want to invest, you can either give post-
dated cheques or ECS(Electronic Clearing System) instruction, and the investment will
be made regularly. Sip’s generally start at minimum amounts of Rs. 500 per month.
In the past, few years Mutual Funds have emerged as a tool for ensuring one’s financial
well-being. Mutual Funds have not only helped family’s tap into the success of Indian
Industry but have also contributed to the India growth story. As information and
awareness is rising more and more people are enjoying the benefits of investing in
mutual funds. One of the main reason the number of retail mutual fund investors
remains small is because 9 in 10 people with incomes in India do not know that mutual
funds exist.
But once people are aware of mutual fund investment opportunities, the number who
decide to invest in mutual funds will increase to as many as one in five people. The
trick for converting a person with no knowledge of mutual funds to a new Mutual Fund
customer is to comprehend which potential investors are more likely to buy mutual
funds and also use the right arguments in the sale.
 INDEX
Serial No. Particulars Page No.

1 Objectives of the Study 1

2 Introduction to the Topic 2

3 Company Profile 5

4 Data Analysis and Interpretation 8

5 Findings 17

6 Conclusion 18

7 Suggestions 19

8 Bibliography 20
Objectives of the Study
1. To ensure liquidity, capital protection, and reasonable income in the short-
term.

2. To study factors affecting to investors in mutual fund.

3. To study most of the pooled fund is invested in short-term safe instruments

like government securities, treasury bills, certificates of deposit,
commercial paper, and inter-bank call money.

4. To provide suggestion majors for improvement of mutual funds if needed

to India.

5. To understand the performance& measure the risk of the Mutual Fund

by using different statistical parameters.

6. To compare the various mutual fund’s schemes of various commercial

banks to find out the best scheme.

7. To know the best Mutual Fund Investment plan for the investment by
studying the returns& expense ratio.
 Introduction to the Topic

MUTUAL FUND
Mutual funds are investment options, through which an investor can put their
money in equity, debt or hybrid instruments. There are different funds which are
created by Asset management companies of various risks. Each fund is managed
by a fund manager.
Hence, these investment options are more secure that direct stocks.
This article will discuss every essential detail about a mutual fund that you should
know, including its definition, types, risk exposure, and return potential.

Understanding Mutual Funds

In simple terms, a mutual fund is an investment option offered by fund houses
where they pick top-performing stocks, bonds, etc. of various sectors and bring
them under one portfolio.
It is a combination of securities where the fund manager decides the amount of
exposure to equity or debt, depending on the category of fund.
Fund managers build a diversified portfolio to offer reasonable returns at lower
risk than the stock market. Since fund managers create and manage the portfolio,
they charge a fee in the name of an expense ratio where buying, selling, or
holding various securities is within their power.

Types and Categories of Mutual Funds

Mutual funds are allocated to asset classes differently, and their exposure to
equity also varies with each mutual fund.
For example, a small-cap mutual fund is heavily exposed to equity and will not
have traces of debt. However a hybrid mutual fund will have traces or debt and
equity.
SEBI has broadly classified mutual funds into:
Equity schemes;
Debt schemes;
Hybrid schemes.

However, under these broad categories of mutual funds, there are sub-types of,
which are explained below:

Equity Schemes

As explained earlier, mutual funds invest in a variety of securities. However, the proportion of
investment into such securities differs.

Hence, those mutual funds that invest at least 65% of their total assets into equity shares of companies
are called equity mutual funds.

Under equity schemes, there are further sub-categories of mutual funds, as explained below:

Large-Cap Funds:

Mutual funds that invest in shares of companies with the largest market capitalization, typically ranked
1st to 100th by SEBI, are called large-cap funds.

Mid-Cap Funds:

Mutual funds that invest in companies with medium market capitalization, typically ranked 101st to 250th
by SEBI, are called the Mid-cap funds.

Small-Cap Funds:

Mutual funds that invest in companies with the smallest market capitalisation, typically ranked after
250th by SEBI, are called small-cap funds.

Multi-Cap Funds:
These mutual funds invest in all market capitalisation companies (basically, large, mid and small cap), to
attain maximum returns with reduced risks.

Sector Funds:

These mutual funds invest in a particular sector such as financial or healthcare and are called thematic
funds.

Index Funds:

Index funds are created considering the companies in a particular market index where the index
and the index fund return will be similar. These funds basically mimic the market.Such funds invest
in the same companies as that of the market index.

ELSS Funds:

These funds invest majorly in equity shares and are eligible to avail INR 150,000 tax deduction
from total income, under section 80C of the Income Tax Act, 1964.

How to invest in mutual funds

These days, investing in mutual funds has become effortless. You can even do it
right from your home. Here are the steps you can follow to begin your investment
journey:

1. Sign up for a mutual fund account on franklintempletonindia.com

2. Complete your KYC formalities (if you have not yet done so)
3. Enter the necessary details as required
4. Identify the funds you wish to invest based on your financial goals
5. Select the fund and transfer the required amount
6. You can also create a standing instruction with your bank in case you
invest in a SIP each month.
Company Profile
History of Mutual Fund Industry in India:

The history of Mutual Fund Industry in India can be traced back to 1963, with the launch of the Unit
Trust of India by the Government of India under an Act of Parliament. UTI was launched under the
regulatory and administrative control of RBI. In 1978, the regulatory and administrative control of UTI
was transferred from the Reserve Bank of India to IDBI (Industrial Development Bank of India). The
first mutual fund scheme that was introduced in India by UTI was in the Unit Scheme (1964). UTI had
Assets Under Management worth Rs. 6,700 Crores, by the end of the year 1988.

In 1987, public sector enterprises such as State Bank of India, Punjab National Bank, Canara Bank, etc.
and other non-UTI segments such as General Insurance Corporation of India (GIC) and Life Insurance
Corporation of India (LIC) entered the market and established public sector mutual funds. The funds
introduced by the public sector banks, by way of historic progression, are listed below:

SBI Mutual Fund

Canara Bank Mutual Fund

Punjab National Bank Mutual Fund

Indian Bank Mutual Fund

Bank of India Mutual Fund

Bank of Baroda Mutual Fund

From the year 1993 onwards, private sector funds were established in the mutual fund industry. In the
same year, Mutual Fund Regulations were introduced in India under which all mutual funds except UTI
has to be registered. The first private sector mutual fund that was registered was the Kothari Pioneer
Fund, which was merged with Franklin Templeton later on. In 1996, the Mutual Fund Regulations were
revised and this substituted the earlier version.

In 2003, the Unit Trust of India Act 1963 was repealed and was divided into 2 separate entities – the UTI
Mutual Fund, which is sponsored by Punjab National Bank, State Bank of India, Life Insurance
Corporation of India and Bank of Baroda and the second entity is the Specified Undertaking of the Unit
Trust of India. This bifurcation was effective from February 2003

When was the first Mutual FUND started?

The concept of mutual funds was invented in Europe in early 1770s. During a bleak economic situation,
Adriaan Van Ketwich, a Dutch merchant created the world’s first mutual fund in 1774. He pooled money
from several individuals and created a diversified fund of bonds. He named it “Eendragt Maakt Magt,”
which translates to “Unity Creates Strength.” The issue was successful and Van Ketwich introduced his
second fund, “Concordia Res Parvae Crescunt” in 1779 with more freedom in investment policy.
Van Ketwich’s fund survived until 1824. But the vehicle he created is still considered to be a hallmark of
personal investing more than two centuries later. The early mutual fund bouquet was close-ended in
nature. It spread from the Netherlands to England and France before heading to the U.S. in the 1890s.

Online

Customers can buy mutual funds online via the corresponding asset management company’s website or
via brokers. There are a number of new platforms that have come which offer direct mutual funds in
their platform. Subscribers can buy mutual funds from these platforms. Direct mutual funds provide
better returns, generally between .5% to 1.5% more than their regular counterparts. This is due to the
fact that brokers charges are excluded from the returns. A 1% deduction from a return of 12% from
mutual funds, leads to a 8.33% lesser return to the investor, which is a huge amount.

Offline

Most of the asset management company have an offline distribution network. These distributors
mainly sell regular mutual funds which carry some commission on it. Funds India, NJ, Prudent, QFund
are some of the popular distributors in India.

Awards

Winners of Morningstar Fund Awards 2022

UTI Mastershare Unit.

Canara Robeco Bluechip Equity.

PGIM India Midcap Opportunities Fund.

Axis Midcap Fund.

Invesco India Mid Cap Fund.

SBI Magnum Income Fund.

ICICI Prudential Bond Fund.

Canara Robeco Income Fund

 Data Analysis and
Interpretation

EQUITY SMALL CAP FUND:

THE ANALYSIS OF MUTUAL FUND’S PERFORMANCE

INTERPRETATION

Equity Small Cap Funds are those funds where, risk is high, but returns are also
high. Investors can get high returns, even there is high risk. Young investors can
start their investment in the Equity Small Cap Fund. In the public sector, SBI
Small Cap Fund gives high returns of 18.76,as there is an expense ratio of
2.44, where in the private sector, HDFC Small Cap Fund gives the returns of
14.41, as there is an expense ratio of 2.12. Investment is also huge in these two
funds.
STATISTICAL PARAMETERS

INTERPRETATION

SBI Small Cap Fund- Regular Plan Growth has the best value of Alpha as compared to other
schemes. It has 11.52 Alpha. So, it has performed better than its Beta. HDFC Small Cap Fund-
Regular Growth Plan has Alpha value 5.55. ICIC Prudential Small Cap Fund- Growth has negative Alpha
value i.e. -1.49, which indicates a fund has underperformed. All small cap schemes have a Beta less
than one. SBI Small Cap Fund- Regular Plan Growth has a Beta value of 0.79. HDFC Small Cap Fund-
Regular Growth Plan has a Beta value of 0.70 & ICICI Prudential Small Cap Fund- Growth has 0.72
Beta value. It indicates that the investment is less risky than the market.

Each mutual fund scheme has more than 70 R-Squared, which indicates a more useful Beta
figure.SBI has higher Sharpe Ratio i.e. 1.17. HDFC has Sharpe Ratio of 0.97 & ICICI has 0.52. It indicates
that SBI Small Cap Fund has better historical risk-adjusted performance. SBI has Standard Deviation of
19.17, HDFC has Standard Deviation of 16.03 & ICICI has 17.02. SBI has the greater Standard Deviation
than others, which indicates it has the greater fund’s volatility than others.
EQUITY MID CAP FUND :
INTERPRETATION :

Equity Mid Cap Funds are those funds where, risk is mid& returns are also mid.
Investors can get mid returns. In the public sector, SBI Mid Cap Fund gives the
returns of 15.28, as there is an expense ratio of 2.03, where in the private sector,
HDFC Small Cap Fund gives the returns of 15.59, as there is an expense ratio of
2.15. SBI Mid Cap Fund & HDFC Mid Cap Fund have huge investment.

STATISTICAL PARAMETERS
INTERPRETATION :

HDFC Mid Cap Fund has Alpha value of 2.57, ICICI Mid Cap Fund has1.96, SBI Mid
Cap Fund has 0.61 & Baroda Mid Cap Fund has negative Alpha value of -10.93,
which indicates that HDFC Mid Cap Fund has performed better than its Beta.
Baroda Mid Cap Fund has underperformed. SBI Mid Cap Fund has Beta value of
0.84, HDFC Mid Cap & ICICI Mid Cap have Beta value of 0.92, which indicates
that these three schemes have the investment which is less risky than the
market. Baroda Mid Cap Fund has Beta value of 1.04, which indicates that the
investment is more volatile than market. Each of the scheme has R-Squared
value more than 70, which suggests that each one has more useful Beta figure.
HDFC Mid Cap Fund has the higher Sharpe Ratio than others i.e.95, it indicates
that the fund has better historical risk-adjusted performance. Baroda Mid
Cap Fund has the greater Standard Deviation than others, which indicates it has
the greater fund’s volatility.
EQUITY LARGE CAP FUND :
INTERPRETATION :

Equity Large Cap Funds are those funds where, risk is low & returns are also low.
Investors can get moderate returns without taking risk. In the public sector,
SBI Large Cap Fund gives the returns of 10.89, as there is an expense ratio of
2.06, where in the private sector, HDFC Large Cap Fund gives high returns of 19,
as there is an expense ratio of 2.08.But the investment in ICICI Large Cap Fund is
more than HDFC Large Cap Fund, as the fund has an expense ratio of 2.02.
STATISTICAL PARAMETERS :

INTERPRETATION :
SBI Large Cap Fund has positive & higher value of Alpha i.e. 2.54, which
indicates that it has better performance. ICICI & HDFC Large Cap Fund have
Alpha value 1.27 & 0.09 respectively. Baroda Large Cap Fund has a negative
Alpha, which shows it has underperformed. SBI & ICICI Large Cap Fund have Beta
value less than one, which indicates the investment is less risky than the market.
Baroda & HDFC Large Cap Fund have Beta value more than one, which shows the
investment in these schemes is more volatile than the market. Every scheme
has higher R-Squared value, which is relevant to the fund’s performance. SBI
Large Cap Fund has higher Sharpe Ratio than others, shows the better fund’s
hisorical risk-adjusted performance. Baroda Large Cap Fund has higher
Standard Deviation of 18.07, which indicates the greater fund’s volatility.
 FINDINGS
1. SBI Small Cap Fund gives better returns in public sector, where HDFC Small
Cap Fund gives better returns in private sector.

2. SBI Mid Cap Fund gives better returns in public sector, where HDFC
Mid Cap Fund gives better returns in private sector.

3. SBI Large Cap Fund gives better returns in public sector, where HDFC Large
Cap Fund gives better returns in private sector.

4. Statistical Parameters show that SBI Small Cap Fund & HDFC Small Cap
Fund have high risk & better performance as well.

5. SBI Mid Cap Fund, HDFC Mid Cap Fund & ICICI Mid Cap Fund have
performed well, as well as the investment in these schemes is less
risky. Baroda Mid Cap Fund has underperformed &more risk in the
market.

6. SBI Large Cap Fund, ICICI Large Cap Fund &HDFC Large Cap Fund have
performed better, where Baroda Large Cap Fund has underperformed. SBI
Large Cap Fund & ICICI Large Cap Fund have less risk, where HDFC Large
Cap Fund & Baroda Large Cap Fund have more riskrisk.
 Conclusion
In short, there is wide scope in the mutual fund investment. Investors should
invest their money in the mutual fund schemes for long term with consistency.
If they invest smartly, they can earn more returns.

They can earn the returns more than the inflation rate by investing in the
mutual fund. They have to choose the right scheme to earn more. By investing in
Small Cap Fund, investors can earn high returns with high risk. While they can
earn mid returns with mid risk by investing in Mid Cap Fund.

There are moderate returns with low risk in Large Cap Fund. According to
my research, SBI Mutual Fund is the best scheme in public sector & HDFC
Mutual Fund is the best scheme in private sector.
 Suggestions
1. The trend is changing now, people are getting more aware and the Knowledge regarding the
mutual fund investment is also increasing Among the people day by day.

2. Govt. of Maharashtra must do some awareness programmes with the Mutual fund companies
in order to make the people more knowledgably And aware.

3. The mutual funds which are already running in the INDIA must upgrade, enhance their
programmes, their transparency and Must educate the people of the city to some
extent.

4. There is a great field and opportunities for this industry in the INDIA, so it should be
flourished and run in a better way in the City.

5. Media or other source of advertisement can also play their role in the Publicity of these
investment alternatives.
 Bibliography
Books:
 ‘Financial Management’ Third Edition by, Dr. R.P. Rustagi
 ‘Financial Management’ Seventh Edition by, Ravi M. Kishore

Websites:
 https://www.wikipedia.org
 www.valuesearch.com
 www.adviserkhoj.com
 www.fundsindia.com
 www.investopedia.com
 www.moneycontrol.com

Other :
 Handbook of NISM on Mutual Fund